Silver Price Forecast – Silver Markets Break Out

Silver markets have rallied quite significantly during the course of the trading session on Monday to break above the $27 level early in trading. The candlestick course is very bullish looking, and it is worth noting that we bounced from the 50 day EMA. With that being said, I do believe that the market probably continues to see a lot of noise, but I think the target at this point in time is going to be the $28 level.

SILVER Video 04.05.21

When you look at the overall market structure, we have held at the 200 day EMA and it now looks as if metals are trying to pick up a bigger bid. Silver is going to be a little bit different than gold though because it is also very sensitive to the overall industrial recovery, as it is an industrial metal. Because of this, I think that you need to be very cognizant of the recent narrative, which of course is that we are going to continue to explode to the upside as far as the reopening trade is concerned. In other words, it is almost impossible to short silver in this scenario, because quite frankly it is a market that will continue to get a bit of a lift due to the overall reopening trade.

As long as that is going to be the case, I like the idea of buying on pullbacks, but I also would not get into the market with huge positions, because quite frankly silver has a nasty habit of having massive corrections. Because of this, you need to be very patient, but it certainly looks as if we are ready to go towards the $28 level.

For a look at all of today’s economic events, check out our economic calendar.